CBOE Launches Prediction Markets With S&P 500 Binary Contracts

Cboe Global Markets has launched Cboe Predicts, a new prediction markets platform built around securities-based products. The offering includes binary option contracts tied to the Mini-S&P 500 Index, trading under symbols XSPBW and XSPBX, and available through Interactive Brokers. Charles Schwab access is expected in the coming months, with additional brokerage support likely to broaden distribution over time. The contracts let traders choose “yes” if they expect the Mini-S&P 500 (XSP) to close at or above a specified level at expiration, or “no” if they expect it to finish below. The XSP tracks the S&P 500 but is scaled to one-tenth the size of the SPX. The products are cleared by the Options Clearing Corporation and fall under US options regulatory rules. Charles Schwab’s James Kostulias cited transparency, defined risk, and investor education.